1 Stock Worth Buying Near Its 52-Week Low, According to Wall Street

In the ever-changing landscape of the stock market, identifying undervalued stocks can be a game-changer for investors. One such stock that has caught the attention of Wall Street analysts is Iovance Biotherapeutics (IOVA). Despite a significant milestone last year with the regulatory approval of its key therapy, Amtagvi, the stock has lagged behind the market, trading near its 52-week low. But is this a buying opportunity or a red flag? Let's dive in.



Iovance Biotherapeutics is a biotech company that specializes in developing cancer medicines using tumor-infiltrating lymphocytes (TILs). These immune cells are designed to target and destroy cancer cells, offering a promising approach to cancer treatment. Amtagvi, Iovance's flagship therapy, was approved by the U.S. Food and Drug Administration (FDA) last year for the treatment of melanoma. This approval marked a significant milestone for the company, as Amtagvi became the first TIL-based therapy to receive an indication for a solid tumor.

However, the journey hasn't been smooth sailing for Iovance. The stock has plummeted by 74% over the trailing-12-month period, and at under $4 per share, it is barely above its 52-week low. Despite this, Wall Street analysts remain bullish on the stock. The lowest price target is $6, the highest is $32, and the average is $19.54, according to Yahoo! Finance. But do Iovance's prospects justify these projections?

One of the key challenges facing Amtagvi is its manufacturing process. The therapy takes 34 days to produce and is administered in specialized treatment centers. This lengthy and expensive process makes it difficult to scale up production and reach a broader patient population. Additionally, the therapy's patient-specific nature adds another layer of complexity, as each treatment is tailored to the individual patient's cells.

Despite these challenges, Iovance is making progress. Last year, the company reported $164.1 million in revenue, and it has only begun to scratch the surface of the 20,000 patients with melanoma eligible for Amtagvi in the U.S. Iovance is also seeking regulatory approval for Amtagvi in other countries, with potential nods in the U.K., the European Union, and Canada in 2025. The company estimates that there are 325,000 annual cases of melanoma worldwide, presenting a massive market opportunity.



Many investors are concerned about Iovance's ability to become profitable due to the high costs associated with the TIL manufacturing process. However, there are several reasons to be optimistic about the company's prospects. First, the FDA's approval of Amtagvi increases the likelihood of regulatory approvals in other countries, which could significantly expand the patient population. Second, Amtagvi's sales momentum is expected to remain strong, with Iovance predicting 2025 product revenue to be between $450 million and $475 million, almost all of which will come from Amtagvi. This medicine has the potential to become a blockbuster within the next two years.

In conclusion, while Iovance Biotherapeutics faces significant challenges, the company's innovative approach to cancer treatment and the potential for Amtagvi to become a blockbuster therapy make it a stock worth considering. The current undervaluation presents a buying opportunity for investors willing to take on the risks associated with the biotech sector. As always, it's important to do your own research and consult with a financial advisor before making any investment decisions.